What Is an Accelerated Death Benefit Rider?

An accelerated death benefit rider is an additional covered benefit that is often provided by life insurance companies. Here are the basics of the accelerated death benefit rider and how it can help you.

Accelerated Death Benefit Rider

The accelerated death benefit rider is a provision that will allow you to collect money from your insurance policy before you actually pass away. In order to qualify for this early payout, you have to be diagnosed with a terminal illness. If you are diagnosed with a terminal illness, the insurance company is going to give you a certain amount of the value of your policy right away. This benefit is typically provided without any additional cost to you when you buy the policy.

Considerations

It is important that you understand that this is not additional money. This is simply an advance on the money that they would be paying you if you had died. Therefore, you are not going to get this money and the total value of your policy when you die. The insurance company does this so that you will be able to have some money to handle your affairs before you pass away. Each company will have its own rules and regulations concerning when this is going to be paid.